Kelly Grace

Friday Five: The Latest in AI, Streaming, and Subscriptions

Welcome to the first Friday Five of 2024! We’re diving into the new year with Apple exploring AI deals with news publishers, The New York Times seeking lawsuits against OpenAI and Microsoft, Amazon Prime Video introducing ads, Americans canceling more streaming services, and retail subscription merchants increasing growth by introducing product ratings and reviews. 


Apple Explores AI Deals with News Publishers

Apple is discussing multiyear deals, exceeding $50 million, with major news and publishing organizations, including Condé Nast and NBC News. They are seeking permission to use their material in Apple’s latest AI development. Some publishers have major concerns regarding Apple’s terms and legal liabilities. Read More on The New York Times.


New York Times Lawsuit Against OpenAI & Microsoft

The New York Times is suing OpenAI and Microsoft for using their articles to train language models without permission, claiming it hurts their brand and misleads users. The lawsuit raises concerns about copyright infringement, misinformation, user trust, and the ethics of AI development. This could reshape how AI uses material and potentially impact the future of both news and technology. Read More on Press Gazette.


Amazon Prime Video Introducing Ads

Amazon Prime Video is saying goodbye to its ad-free platform. Starting January 29th, viewers will see "limited" commercials, unless they choose to pay an additional cost for an ad-free experience. Following the trend of other streaming services, such as Hulu, Netflix, and Disney+, they intend to offer ad-supported tiers to increase revenue. Read More on Subscription Insider.


Americans Canceling More Streaming Services 

Facing rising costs and content fatigue, many consumers are ditching streaming services. One-quarter of U.S. subscribers have canceled at least three of their streaming services in the past two years. Companies are trying to find ways to retain customers by creating lower-cost ad-supported tiers, bundling products, and offering discounts or free months. Read More on The Wall Street Journal


Product Ratings & Reviews Increase Retail Subscription Growth

A study on the success of retail subscriptions found that merchants with product ratings and reviews outperform those who lack this feedback. 83% of successful retail merchants offer them, while only 30% of bottom-performing retailers provide this option. Ratings inform potential customers, increase confidence, and drive conversions. Read More on PYMNTS.


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